Nine Argent Mortgage employees charged with fraud

Last week in Cleveland, nine former employees of former subprime lender Argent Mortgage Co. were indicted for their roles in making nearly $13 million of fraudulent residential mortgage loans. The Cuyahoga County Mortgage Fraud Task Force, which brought the charges (it operates under authority from the Ohio attorney general) alleged, among other things, that managers …

Saxon Mortgage problems are not all Novastar issues

When Novastar Financial of Kansas City went broke nobody really cried about it. This is a press release from October 16, 2007: Troubled subprime lender NovaStar Financial, Inc. said late today that it will sell its entire servicing rights to Saxon Mortgage Services, Inc. in a bulk deal that pulls the rug out of NovaStar’s …

Morgan Stanley paid $706 million for Saxon Mortgage

Both Merrill Lynch and Morgan Stanley were copycatting Lehman Brothers Holdings’ modus operandi of acquiring mortgage originators. We know how well that turned out as Lehman is gone now. Lehman collapsed last September due to a variety of dangerous investments in commercial and consumer real estate and derivatives. Similarly, Morgan Stanley had paid $706 million …